Possession before closing?

12 Replies

     I have just sold a flip. The closing date is May 21, and the buyer is asking for possession on May 15 because he sold his house and the closing for that one is on the 15th. I am not inclined to allow this, but I have thought of requiring that he rent at a daily rate until closing. Are there problems with strategy or should I just say no possession before close? 

Originally posted by @Wayne Brooks :

Just say no.... been there, done that, didn’t like it.  Saying no will also spur them to close as quick as they can.

this is never allowed never a good idea for many reasons.  

1. they dont close how your going to evict them ?

2. they start finding little stuff wrong with the house and bug you.

3. simply not anything you need or should do for the above reasons we never ever allow it.

 

@Gail W.

Answer is always no. You did mention renting the buyer which is an option. realize the buyer must go through the normal vetting process all tenants go through.

I had this happen but the opposite. I was buying and the homeowner wanted to stay in the property after closing. I agreed, but only if they went through my background check. They bulked at this so we agreed to move the closing date to a later date. Needless to say, after closing I was working on the property when I heard a knock on the door. It was a private collection guy looking for previous owners as they had been passing bad checks. Luckily, I did not rent to them and simply postponed the closing date.

A compromise a friend of mine used a few years ago was he allowed the physical 'stuff' to be stored in the garage for the 1-2 week overlap. The new buyer felt like the seller cared and put some effort into helping while also understanding the reason they wouldn't allow actual possession. The buyer was easily able to figure out living arrangements for that time, it was the moving all their stuff twice and storing it in between that was an issue. So being able to move once and deliver everything to the new garage relieved that stress and concern for them.

1. Don’t stress

2. Push back and ask them to close earlier and they can take possession after they close

It’s just business!

On the other hand I’ve closed deals where I’ve been handed over apartment complexes before closing 🤪 by outgoing management and landlords

@Gail W.

I go with no.  There's hotels and motels for this.

IF you did, it should be under a lease with a full background and credit check.   AND  only if your jurisdiction is processing evictions -- Just In Case.

Things like this are never a problem.  Until they are!

@Gail W.

Get the attorney that is handling your side of the sale to draw up a "buyer possession before closing" document. Buyer must sign it before possession...spell out the daily rentals amount and cover all imaginable scenarios... make sure the buyer reads and signs at least a week before they want to move in.

Have you run a background check in the buyer? If there's any funny business in their past the credit, criminal, etc report should uncover.

Have you asked your attorney if closing can be moved up any?

Good luck!